Over 65 homeowners will have amassed a record £86bn of debt by 2018, up from £78bn in 2017, research by the Centre for Economics and Business Research (Cebr) found.
People have all kinds of secured and unsecured debt including mortgages, credit cards, overdrafts, loans, car finance, hire purchase, student loans, payday loans, and store cards.
Cebr predicted this increasing to £142bn in 2027.
Dave Harris, chief executive at more 2 life, said: “This rapid increase will only be exacerbated by an ageing population, people buying houses at a much later stage, and shrinking pension pots resulting in low retirement incomes.
“For growing numbers of people aged 65 and over, financial products that draw on the resource of housing wealth may well turn out to be the optimal way for them to solve the financial challenges they and their families have to face in future.
“Our industry is perfectly positioned to seize this opportunity and deliver the best possible financial outcomes to cater for this growing consumer need. As such, we must rise to the challenge and ensure the needs of consumers are being catered for.”
The average total debt held by 65 to 74-year olds in 2017 hit £15,700, lower than the £12,500 Cebr predicted.
Homeowners aged 65 to 74 who are paying off a mortgage owe an average of £120,000, which is 24% higher than in 2013.